What are your learnings from 2008 market crash, which are useful today in 2020?


What are your learnings from 2008 market crash, which are useful today in 2020?

What I learnt from 2008, a lot of them.
Leverage
I was killed in Leverage in NIFTY Options in Feb 2008, the beginning of the fall post RPower IPO. Did not learn my lessons and still carried few positions and the market kept tumbling lower and lower and I was a Bull then, always thinking market would eventually go up.
Try to control leverage as you need to live for another day to fight rather than wiping out the capital.
Market shows it has bottomed out but there are more legs in the fall
Everytime market shows dead cat bounces which I thought were reversal patterns and was getting into pull back rallies which were getting sold into on the Long side. S&P started falling from 1300 and made a bottom near 660s but it went in 3–4 swings, likewise our market fell from 6000 to 2000s.
Always trust yourself, market gives you better opportunities, they guys on TV who say this is the best time to buy have a job to do and they do it.
Market leadership changes every bull run
2008 Bull run was all Reliance, Unitech, DLF, Suzlon and a lot of other companies. NIFTY of 2008 was more Infra, Construction, Materials.
If you look now, it is all Financials, Autos and Consumer Durables. I was initially chasing the fallen angels of the past Bull run, realized my mistake but had to pay higher prices for the new leaders by then.
The coming bull run will not be led by Financials, they might still have the market cap but you will see new leaders and sectors coming in. Better identify those chunks or sectors and start buying those.
This would involve a bit of risk as you never know what is the sector that will assume leadership.
Do not sell in panic, you will always regret
Selling stocks and sitting on cash is the worst possible outcome among all this. People should either hold on to their investments or add more. Withdrawing at these prices and sitting on cash is not really recommended or justified.

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